Crypto Markets Brace for U.S. Election Impact

DAILY MARKET OVERVIEW
Bitcoin turns 16

👋 Hey Crypto Enthusiasts! Today, we dive into key Bitcoin market updates, ETF milestones, and potential shifts as the U.S. election approaches. Let’s dive in!

🥳 Bitcoin is celebrating its 16th anniversary today on October 31st, marking the day in 2008 when Satoshi Nakamoto released the original white paper that would revolutionize finance. This milestone coincides with Bitcoin’s recent surge past $70,000 - its highest in over seven months, approaching the all-time high of $73,737 set in March.

• Although it has settled at $70,000 Bitcoin has still climbed an impressive 70% in 2024, reflecting solid investor confidence.

• October also brought a record-breaking 20.1 million transactions, surpassing July’s previous peak of 19.51 million, indicating robust network activity and adoption.

Fueling this momentum is the rise of ETFs. These funds now collectively hold over 1 million BTC, with BlackRock at the forefront. BlackRock recently recorded a daily inflow peak of $893 million, showcasing soaring demand.

However, not all is smooth sailing. Standard Chartered’s Geoff Kendrick points to potential price pullbacks and increased volatility as the U.S. presidential election on November 5 approaches.

• Traders adjusting their positions could push Bitcoin below $70,000, with delays in election results potentially adding more instability.

On the flip side, a Republican victory could energize the market, possibly driving Bitcoin to $125,000 by year-end and renewing interest in altcoins like Solana.

Meanwhile, the SEC is reviewing Grayscale’s application to convert its Digital Large Cap Fund into a multi-asset crypto ETF. If approved, this would offer exposure to top cryptocurrencies like BTC, ETH, XRP, Solana, and AVAX to institutional investors.

This, combined with the election outcome, could significantly impact crypto ETF developments and regulatory approaches. A Trump administration, experts note, might take a more favorable view of crypto, speeding up ETF approvals.

In summary, while Bitcoin’s rally is promising, stay alert to ETF updates and the U.S. election - they could heavily shape the market’s path forward.

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SOCIAL SENTIMENT
Why Isn’t Crypto Gaining More Attention?

Analyst Miles Deutscher points out that even though Bitcoin is approaching its all-time highs, the market feels surprisingly quiet. The reason? Retail investors haven’t made their comeback yet.

Between October 2023 and March 2024, altcoins saw impressive gains, with some increasing 4-5 times in value and AI/meme tokens soaring 10-15 times. Yet, most retail investors only noticed this boom in February 2024, right at the end of the rally. This pattern shows that retail interest typically peaks during the final 20% of a price surge, reflecting the Pareto Principle in action.

The current altcoin rally is only four weeks in, following a six-month slump. Last time, it took about five months for retail investors to return. This time, it might happen sooner due to renewed confidence from the March rally but it won’t be immediate.

Deutscher believes that when BTC breaks its ATHs, it acts like powerful marketing, grabbing attention and boosting altcoins. Right now, this quiet period is an opportunity to get ahead of the crowd.

So, if your friends or coworkers aren’t talking about crypto just yet, don’t be surprised. According to Deutscher, today’s calm could be the setup for tomorrow’s surge.

NEWS OVERVIEW
The Latest Crypto Headlines 📰 

Russia to Limit Crypto Mining in Power-Strained Regions
Russia plans to restrict crypto mining in specific regions facing electricity shortages, despite having legalized mining earlier this year.

Solana ETF Filings Increase After Bitcoin, Ethereum Approvals
Canary Capital joins the race for U.S. approval of Solana ETFs, which could offer investors exposure to SOL without direct asset holdings.

Coinbase Q3 Revenue Drops, Launches $1 Billion Buyback
Coinbase reported lower Q3 revenue but announced a $1 billion stock buyback, maintaining profitability and diversifying income sources.

Crypto Sector Faces $1.4 Billion Loss in 2024 Despite Fewer Hacks
The crypto industry has lost over $1.4 billion to hacks and scams this year, even as monthly losses decline, per Immunefi's report.

YOUTUBE INFLUENCER SUMMARY 📷️ 
BecauseBitcoin - BTC is pumping, but $ETH is what you want (31.10.2024 Summary)

Max from BecauseBitcoin has an intriguing take on Bitcoin (BTC) and Ethereum (ETH) that’s worth paying attention to. Right now, Bitcoin is knocking on the door of new all-time highs - it’s so close that you can practically feel the excitement in the air.

• Interestingly, while Bitcoin’s spot price just missed the mark, its CME Futures have already set a new record. That’s a huge clue that BTC might be gearing up for a serious rally, especially since Q4 has historically been a golden time for Bitcoin, with average gains of 21% in October and 46% in November.

But what about Ethereum? ETH is still down 35% from its yearly peak, lagging far behind Bitcoin. Sounds gloomy, right? Not so fast.

Max points out that ETH has a history of finding its groove in Q4 and then outperforming Bitcoin in Q1 and Q2. It’s been in a slump for over 1,000 days, but with BTC on the edge of price discovery, ETH could be ready for a comeback. This might just be the perfect setup for ETH to shine and reward those willing to stick around.

Josh Olszewicz - Alt Coins: At the Starting Line (31.10.2024 Summary)

Crypto analyst Josh Olszewicz believes the altcoin market might be ready for a shift, but it hinges on Bitcoin's (BTC) next move. Right now, BTC is holding strong near its all-time highs, which keeps altcoins in wait-and-see mode.

• For altcoins to rally, BTC must maintain its bullish stance or break into new highs. This environment of uncertainty is fueled by the upcoming U.S. election and anticipated market volatility.

Josh highlighted that BTC's dominance has been strong since 2023, meaning Bitcoin-based portfolios have outperformed altcoin-heavy ones. He pointed out that for a true alt season to kick off, we’d need to see U.S. liquidity increase - a signal not yet evident.

Despite some speculative assets showing signs of life, most altcoins are still under bearish pressure, with few breaking key technical indicators like the 200-day moving average. For now, alt investors should watch BTC's moves closely, as it remains the market leader.

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